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Understanding Facebook and How It Makes Money
By: Matthew Busby
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As we all know or have come to figure out, Facebook makes money off its users and its advertisers. Over the past couple of months, Facebook has implemented its “suggested” or “promotional” posts to bring in some revenue and new enjoyable experience to users “friends” and “fans.” This article delves a little deeper into the beast that is Facebook.
 
To this day, many still do not understand how their favorite and largest social networking site makes money. According to The Search Agency, only 54% of Facebook users know how the giant functions. The figure is 57% men and 51% women.



Keith Wilson, The Search Agency’s vice president of agency products had this to say:

“It’s really incumbent upon advertisers, and publishers, as well, to help educate consumers on how data can be used in a useful fashion. That’s the key thing. Everyone says, “Oh, this ad is not relevant to me.” But if you get ads that are more relevant to you and you understand the relevance based on the queries that you’re making … there is relevance there. They’d rather be served that ad than the alternative, which is something more spammy.”
 
There are more statistics available for this study at Allfacebook.com.
 
Also, to see the mass amounts of Facebook’s newer advertising offerings, check out this article here.


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About the Author
Matthew Busby is currently a student at the University of Tennessee studying advertising and an intern at Scripps Networks Interactive. He has a strong interest in the industry of social media and televison. He also enjoys writing for his own personal blog at www.busybusby.wordpress.com.
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